Current through Register Vol. XLI, No. 50, December 13, 2024
Section 112-7-4 - Valid Bankers' Surety Companies Issuing Deposit Guaranty Bonds4.1. The Treasurer may approve a bankers' surety company as acceptable after receipt and review of a request for approval, receipt of evidence that the surety company has met all of the requirements of this rule, a review of information obtained through an independent investigation of the surety company by the Treasurer, and consideration of any other information the Treasurer considers appropriate.4.2. Before a state depository may be insured through a deposit guaranty bond, the depository shall first determine that the surety company issuing the bond is a valid bankers' surety company approved by the Treasurer. Any depository insured through a deposit guaranty bond issued by a bankers' surety company that is not approved by the Treasurer shall not receive or hold for deposit any state funds.4.3. Any bankers' surety company that wishes to provide a deposit guaranty bond to a state depository to insure state funds shall first submit to the Treasurer a written request for approval as a valid bankers' surety company. A surety company shall not issue a deposit guaranty bond to insure state funds on deposit with any state depository without receiving prior written approval from the Treasurer.4.4. In order to qualify as a valid bankers' surety company, the surety company shall provide to the Treasurer:4.4.1. Evidence that it is registered to do business in the State of West Virginia and is in good standing with the West Virginia Insurance Commissioner and the West Virginia Commissioner of Financial Institutions;4.4.2. Evidence that it has at least one current superior rating by a nationally recognized statistical rating service, such as A.M. Best or Moody's;4.4.3. A statement that it agrees to abide by all applicable laws, rules and requirements of the United States of America and the state of West Virginia, including, but not limited to, those of the West Virginia Insurance Commissioner, the West Virginia Commissioner of Financial Institutions and the West Virginia State Treasurer; and4.4.4. Its most recent annual report.4.5. Upon request of the Treasurer, the surety company shall further submit any clarifying or additional information the Treasurer may require for investigation and consideration of the company.4.6. In considering approval of a bankers' surety company, the Treasurer shall consider all other relevant factors and available information acquired through due diligence that affect a company's viability and capacity to provide valid deposit guaranty bonds to depositories in this state.4.7. All approved bankers' surety companies shall submit quarterly and annual reports and filings required by the Treasurer, including, but not limited to, statements of financial condition and verification a rating has not changed. Information required from the surety companies may be filed electronically or in any other manner determined by the Treasurer.4.8. All approved bankers' surety companies are subject to review by the Treasurer's office on a quarterly basis or more frequently if the Treasurer believes it is warranted. If, after any review, the Treasurer determines that a bankers' surety company no longer meets the Treasurer's requirements, the Treasurer shall rescind the approval of the surety company, immediately notify the surety company and the affected state depository of the rescission of the approval, and take any actions the Treasurer determines necessary in order to protect state funds.4.9. Any approved bankers' surety company that issued a deposit guaranty bond insuring state funds shall provide the Treasurer at least thirty (30) calendar days advance written notice of intent to amend, cancel or not renew the bond. Any state depository that has notice the surety company may or will amend, cancel or not renew its deposit guaranty bond shall immediately, and in no event in not less than thirty (30) calendar days, notify the Treasurer and forward a copy of any notice received to the Treasurer.4.10. If a depository insured through a deposit guaranty bond issued by a approved bankers' surety company becomes insolvent or in any way breaches its contract with the Treasurer and fails to cure the insolvency or breach within five (5) business days, the bankers' surety company shall within three (3) business days of written notice from the Treasurer remit to the state of West Virginia the amount of funds determined by the Treasurer as required to make the state treasury whole.4.11. The Treasurer may require a state depository to post a collaterally secured bond and pledge securities in lieu of a deposit guaranty bond, if the Treasurer believes it necessary to protect state funds.4.12. A deposit guaranty bond issued by an approved bankers' surety company to insure state funds on deposit with a state depository may only secure those funds in the custody of the Treasurer.